The practice of presenting a pre-budget document – this is the second year running that the government has chosen to do so – has removed much of the aura around the actual budget day.

Last year, budget day itself did not have the same effect and did not get as much reaction as the announcement, a few days before, of the introduction of a water and electricity surcharge, a hard-hitting measure in all senses of the word to both industry and families.

Today, seven days before Prime Minister Lawrence Gonzi, as Finance Minister, is pictured and filmed entering the Presidential Palace with a black briefcase containing Malta’s future, much of what the government plans to do is already known.

This is precisely because the pre-budget consultation document that was published in mid-summer contains most of the proposals that will now be officially put forward next week.

The document was meant to open up public debate on the government’s intentions, and judging by the response, it seems that a lot of interest has been generated. Apart from constituted bodies and non-governmental organisations, reaction was also forthcoming from the public at large.

Parliamentary Secretary Tonio Fenech, in an interview given to this newspaper last Monday, said that some 2,000 people responded to the mail-shot the government sent to all houses after the document was published, apart from the many emails and reports received.

This being a budget that is close to an election – some say it could be the last budget before Dr Gonzi calls for a national poll – it is more than likely that the government will be giving something back.

Whether the Lm8 million tax relief on income will be enough to satisfy the people’s expectations – it would amount to just Lm20 per person per year – is doubtful, considering the many sacrifices that workers and their families have had to sustain over the past years, and particularly during the past 12 months since the notorious surcharge was introduced. Again, these Lm8 million will then not be available for other projects.

A reduction of the departure tax might be welcomed but, again, it is not something that would really make an impact, considering that the Maltese still continued to travel in spite of their complaints about the excessive levy.

The cost of living increase adjustment will also be a controversial affair since workers will be getting 50c less of it this year, after having been given this 50c in advance following the introduction of the surcharge. So, in practical terms, what should be a Lm2.25 weekly increase will drop to Lm1.75 a week.

Of course, any changes to the tax bands could offset any protestations as it could make up for this difference.

It would be wise on the government’s part to address the surcharge problem, as this is ultimately what has had a real negative impact on people’s lives. It has reduced their spending power and as such, has had a negative effect on the economy in general terms. Having money to spend makes people feel good, and people would rather spend it on a meal in a restaurant rather than to pay a 60 per cent surcharge on lighting a bulb.

One other aspect that deserves attention is the fact that children’s allowance has been, for the past few years, not given to all families. Maybe the time has come to reverse the situation. All children need books and clothes.

One week before the budget for 2007 is due to be presented, the Labour Party is raising the people’s expectations to be able to gain all the political advantage it could after the event.

On the other hand, the government is saying that “it will be responsible in its decisions and will not jeopardise our targets, which people have made sacrifices to achieve,” as Mr Fenech explained to this newspaper.

We will know next week.